The Triborough Bridge and Tunnel Authority sold $1.65 billion in bonds to fund costs associated with the implementation of a new congestion tax in downtown Manhattan and other Metropolitan Transportation Authority (MTA) projects.
The authority, which is also known as MTA Bridges and Tunnels, sold the bonds in three series. The Subseries 2024A-1 bonds, consisting of $1.5 billion, mature between 2027 and 2064, yielding between 2.34% and 4.28%. The Subseries 2024A-2 bonds, consisting of $102.9 million, mature between 2059 and 2064, yielding between 3.88% and 3.99%. The Subseries 2024A-3 bonds, consisting of $45 million, mature on May 15, 2064, and yield 3.99%. The securities received a rating of AAA from Fitch Ratings and AA+ from S&P Global Ratings.
“The rating reflects our view of extraordinarily strong coverage and liquidity, very strong economic fundamentals, low volatility, and New York City’s general creditworthiness,” S&P analyst Nora Wittstruck said in a press release.
The issuance comes ahead of the launch of congestion pricing, an MTA plan to introduce tolls on most vehicles that enter lower Manhattan. The MTA expects the tolls to generate $1 billion in annual revenue, helping the authority to issue $15 billion in bonds, NY1 reported.
MTA Bridges and Tunnels operates seven bridges and two tunnels in New York City. The bonds are special obligations of MTA Bridges and Tunnels, payable by taxes that support the congestion tax program.
Goldman Sachs & Co LLC served as lead underwriter on the issuance, purchasing the bonds for $1.79 billion. The price reflected a premium of $146.5 million. Public Resources Advisory Group, Inc and Backstrom McCarley Berry & Co, LLC acted as financial advisors.